News on the Doubling Of the Turnover Ceiling for Microenterprises

The Minister of the Economy, Bruno Le Maire, announced: the 2018 Finance Law will provide for a doubling of the ceiling of turnover for microenterprises . This announcement is not surprising given that it was part of President Macron’s campaign pledges. The micro-entrepreneur’s scheme now authorizes services or commercial activities, provided that they are limited to annual turnover of € 33 100 for services and € 82 800 for commercial activities.

This ceiling should be, for 2018, 170 000 euros for commercial activities and 70  000 euros for services. The idea is to allow more individual entrepreneurs to benefit from the micro-social and micro-tax regime. This also makes it possible for micro-entrepreneurs, who are bridling today for fear of exceeding this famous ceiling, have more room for maneuver.

1) The thorny issue of VAT

At present, micro-entrepreneurs benefit from the VAT exemption scheme. This means that they are exempted from charging VAT and therefore to pay it back to the State.

But will this VAT exemption be extended to the new ceilings?

According to the Court of Auditors, the current deductible represents, for the state, a “shortfall” of 550 million euros per year . We can therefore imagine the loss of revenue of the State if this deductible is applied to the new thresholds. This 1 st point may make the government hesitate to relieve this exemption from VAT.

The second point which may pose a problem for the Government is the fact that France is linked to the European Union by Directive 2006/112 / EC, the VAT Directive. So any government movement on VAT will have to be negotiated with Brussels beforehand.

The cabinet of the Minister of Economy has indicated that the project will be presented in more detail at the end of September.

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